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Question

I took money out of my IRA to pay for a business tax levy. Do I need to pay the 10% penalty?

Submitted: 31 days and 5 hours ago.
Category: Tax
Value: $30
Status: CLOSED
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Optional Information

State/Country relating to question: Massachusetts

Accepted Answer

If you are under age 59 1/2 and do not meet any of the exceptions to the penalty then the additional 10% tax will apply. If the tax was due to an IRS levy then the penalty would not apply.

 

The exceptions that are available are explained on pages 53 - 55 of IRS Publication 590 - http://www.irs.gov/pub/irs-pdf/p590.pdf

 

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Expert: Bill
Pos. Feedback: 99.6 %
Accepts: 
Answered: 10/24/2009

Enrolled Agent

EA, QPA, CHFC, CEBS, CLU - 29 years experience providing financial advice

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